The IMF see the light

It is heartening that the IMF seems to recognise the flaws in our current monetary system and is proposing radical change.

The proposal is full reserve banking, which is gathering increasing support elsewhere, as described in a previous post.

This takes away from private banks the role of creating our money supply. Instead, all money would be issued by the reserve bank and held in commercial banks' reserve bank accounts. This would eliminate, at a stroke, bank runs and the need for taxpayers to bail out banks in future. It would also massively reduce debt since money creation would no longer be accompanied by debt creation.

The only people that would 'suffer' are bankers, as they would lose their richly rewarded and much abused right to create money. They would only be able to intermediate between savers and borrowers. Banks would then actually work like the average person, and at least one nobel prize winning economist, mistakenly thinks they work.